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| "Alfa Ltd. has 10,000 ; 10% Debentures of Rs 100 each due for redemption at a premium of 10%. The company had a credit balance of Rs 12,00,000 in its surplus ( Balance of statement of P&L). Company decided to redeem the debentures out of it. The amount transferred to DRR would be --" |
Rs 10,00,000
Rs 12,00,000
Rs 3,00,000
Rs 2,00,000
|
| Rs 10,00,000 |
| If redemption is out of profit , amount transfer to DRR should be equal to 100% of the nominal value of Outstanding Redeemable Debentures. 10,000 x 100 = ₹10,00000 |
